ISDS 3115 Chapter 4 Exam Questions and Answers Fully Solved Latest Update

ISDS 3115 Chapter 4 Exam Questions and Answers Fully Solved Latest Update The forecasting time horizon and the forecasting techniques used tend to vary over the lifestyle of a product. - Answers TRUE Demand (sales) forecasts serve as inputs to financial, marketing, and personnel planning - Answers TRUE More forecasting techniques assume that there is some underlying stability in the system. - Answers TRUE The sales force composite forecasting method relies on salespersons' estimates of expected sales. - Answers TRUE A time-series model uses a series of past data points to make the forecast. - Answers TRUE The quarterly "make meeting" of Lexus dealers is an example of a sales force composite forecast. - Answers TRUE Cycles and random variations are both components of time series. - Answers TRUE A naive forecast for September sales of a product would be equal to the sales in August. - Answers TRUE One advantage of exponential smoothing is the limited amount of record keeping involved. - Answers TRUE Forecast including trend is an exponential smoothing technique that utilizes two smoothing constants: one for the average level of the forecast and one for its trend - Answers TRUE In trend projection, the trend component is the slope of the regression equation. - Answers TRUE Seasonal indexes adjust raw data for patterns that repeat at regular time intervals - Answers TRUE The best way to forecast a business cycle is by finding a leading variable. - Answers TRUE Linear-regression analysis is a straight-line mathematical model to describe the functional relationships between independent and dependent variables. - Answers TRUE Demand cycles for individual products can be driven by product life cycles. - Answers TRUE Focus forecasting tries a variety of computer models and selects the best one for a particular application - Answers TRUE Many service firms use point-of-sale computers to collect detailed needs for accurate short-term forecasts - Answers TRUE Forecasts: - Answers are rarely perfect One use of short-range forecasts is to determine - Answers job assignments Forecasts are usually classified by time horizon into three categories: - Answers short-range, medium-range, and long-range A forecast with a time horizon of about 3 months to 3 years is typically called a - Answers medium range Forecasts used for new product planning, capital expenditure, facility location or expansion, and R&D typically utilize a - Answers long-range time horizon The three major types of forecasts used by business organizations are - Answers economic, technological, and demand What is not a step in forecasting? - Answers eliminate any assumptions The two general approaches to forecasting are - Answers qualitative and quantitative The forecasting model that pools the opinions of a group of experts or managers is know as the - Answers jury of executive opinion model Which of the following techniques uses variables such as price and promotional expenditures, which are related to product demand, to predict demand? - Answers associative model